Big miners rally on iron ore bottom

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BHP and RIO are off to the races today up 1.5% apiece despite the Easter iron ore price carnage. FMG is not doing quite so well up only slightly as its fate is increasingly obvious to slow-minded equity. To the indexes:

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The idiocy spreads are again widening:

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Except for juniors which are not reacting well to AGO’s imminent death. BCI is down to a new low and others are close to it:

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The big iron rally is more rational today with a near term bottom in for the iron ore price. Dalian is up nearly 2% today as the shorts cover and there is also the weak US dollar to offer a bit of a lift.

As I said this morning, normally I’d call a bottom here but don’t kid yourself that the selling is over. Mills can restock in a very short time and resume the selling. No market goes straight down.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.